Corelogic stories
Smaller homes may offer investors better returns as weaker price growth puts rental yield back in focus amid uncertainty, CoreLogic says.
Queenstown looks most exposed, with tourism reliance and Airbnb saturation making its property market vulnerable to a COVID-19 downturn.
New Zealand home values kept climbing in February, lifting the average house to NZD $722,475 and worsening affordability for buyers.
Mortgaged buyers lifted their share of property purchases to 25% by the end of 2019, with some suburbs seeing them dominate the market.
Auckland's housing recovery is gathering pace, with low rates and tight listings expected to push prices higher in 2020.
Tight housing supply and surging demand are pushing Dunedin values up 17% a year, with buyers still outpacing new listings.
Tight listings and lower bank serviceability tests are helping to lift New Zealand house values, with Auckland appearing to have bottomed out.
Tight listings have helped support values in some Auckland suburbs, while Kumeu and Long Bay remain the most heavily marketed.
House price growth is expected to remain modest as easing lending conditions and strong migration support demand, but listings stay tight.
Wellington’s values have stalled for six months as more listings, weaker sales and shifting buyers cool the market after a 52% boom.
Top-end flats are showing some weakness, even as most apartment prices move broadly in line with the wider property market.
Home buyers can now compare suburb-level price shifts at a glance, as CoreLogic's map shows where values have risen, fallen or held steady.
Investor buying climbed to 25% of New Zealand property purchases in July, the highest share since late 2016, CoreLogic said.
Auckland owners face weaker values for longer, but CoreLogic says the city lacks Sydney’s apartment glut and crash risk remains limited.
New dwelling consents are still climbing despite labour and materials constraints, with Auckland’s smaller homes now outpacing standalone houses for the first time.
Affordability and tight supply are driving activity in cheaper districts, with Tararua, Waipa and Selwyn topping the turnover rankings.
Affordability is pushing first home buyers to dominate purchases in several New Zealand suburbs, with some taking more than 60% of sales.
Property demand in Auckland and Queenstown has softened after the ban, with foreign purchases plunging 81% in the first quarter.
Auckland's market weakness is dragging New Zealand house prices sideways, with suburbs still showing sharp gains in the regions and losses on the North Shore.
Many landlords may simply hold properties longer or pass them on, as the proposed ring-fence is unlikely to slash rental stock or confidence.
